Coronavirus Update

LP Conferences Postponed - Europe Travel Banned - Italy Stores Shut Down

New England Loss Prevention Expo reschedules event for Sept. 30
Based on the continued developments with COVID-19 coronavirus and consultation with public health officials, we have made the decision to reschedule the March 18th LP Expo. The new date for this year's Expo is September 30. There is so much that happens behind the scenes to make this conference a reality and this decision was not made lightly. It was extremely important to us to ensure we were not influenced by fear or rumor but instead grounded in data and consistent with industry expert recommendation. At this point, we all agree it is the correct call and best course of action. retailersma.org

2020 IOBSE Spring Conference Postponed Over Coronavirus Concerns
Due to the increased spread of the Coronavirus (COVID-19 virus), the 2020 Spring IOBSE Conference scheduled for April 21 – 23 in Redmond, WA hosted by Microsoft has been postponed until further notice.

Our concern is for everyone involved, and the community. Our decision to postpone the conference was not made easily, however, the safety of our students, members, and sponsors is the priority. The IOBSE is committed to the safety of everyone. We will keep you posted as we continue to monitor this critical event. iobse.org

RFID Journal LIVE! 2020 postponed until September due to coronavirus
After closely monitoring the risk and impact of COVID-19 on a daily basis, and speaking at length with members of our community, RFID Journal LIVE!, which had been scheduled for April 28-30, 2020, at the Orange County Convention Center in Orlando, Fla., has been postponed to September. RFID Journal LIVE! 2020 will now take place Wednesday, September 9 to Friday, September 11, 2020, at the Orange County Convention Center and will co-locate with another Emerald event, Surf Expo. Staging Thursday, September 10 – Saturday, September 12, 2020 at the Orange County Convention Center, Surf Expo is the largest and longest-running board sports and beach/resort lifestyle tradeshow in the world. rfidjournallive.com
 

Coronavirus Map: March 12 Update

US: 1,302 Cases in 44 States, 38 Dead -- Globally: 127,800 Cases, 4,718 Dead

U.S. to Suspend Most Travel From Europe as World Scrambles to Fight Pandemic
President Trump on Wednesday night blocked most visitors from continental Europe to the United States and vowed emergency aid to workers and small businesses as the World Health Organization declared the coronavirus a pandemic, stock markets plunged further and millions of people cut themselves off from their regular lives.

In a prime-time address from the Oval Office, Mr. Trump outlined a series of measures intended to tackle the virus and its economic impact as he sought to reassure Americans that he was taking the crisis seriously after previously playing down the scope of the outbreak. He said he would halt travelers from Europe other than Britain for 30 days and asked Congress to support measures like a payroll tax cut. nytimes.com

World economy takes hit - Business plans disrupted - Consumer confidence shaken

President Trump’s abrupt decision to shut America’s borders to most European travelers sowed chaos at the Continent’s airports and at travel-related businesses Thursday, as airlines scrambled to figure out how to halt flights to the United States and governments warned of potentially devastating financial costs. French Finance Minister Bruno Le Maire spoke of a “massive shock,” and European officials reacted angrily. The State Department warned Americans that they should reconsider all international travel, the most severe caution it can offer short of “do not travel.” nytimes.com

Travel industry could lose $24 billion, crippling tourism from outside US

The U.S. travel and tourism industry could lose at least $24 billion in foreign spending this year because of the rapidly spreading coronavirus, according to data produced by Tourism Economics. That would be equivalent to about seven times more than the industry lost during the SARS outbreak in 2003, according to the data. The figures also imply 8.2 million lost visitors in one year, which would be even more than the 7.7 million international travelers lost in 2001 and 2002, after the 9/11 terrorist attacks. cnbc.com

Coronavirus May Light Fuse on ‘Unexploded Bomb’ of Corporate Debt
A surge of risky borrowing by companies around the world leaves the global economy especially exposed to the potential costs of the outbreak. As the coronavirus outbreak spreads, halting factories from China to Italy, sending stock markets plunging and prompting fears of a worldwide recession, historic levels of corporate debt threaten to intensify the economic damage. Companies facing grave debt burdens may be forced to cut costs, laying off workers and scrapping investments, as they seek to avoid default. nytimes.com

Italy Shutdown:

Italy closes bars, restaurants and most shops as coronavirus death toll jumps 30%

Italy's nationwide coronavirus lockdown is set to rock the luxury retail industry,
with brands bracing for what could be a billion-dollar setback

Starbucks and Others Shut Shops in Italy Amid Coronavirus Lockdown

Apple closes all retail stores in Italy until further notice due to coronavirus pandemic
 

Coronavirus Puts Back-to-School Shopping on the ‘Do It Now’ List
While you’re hoarding wipes and toilet paper, you might want to stock up now on clothing and other supplies for the back-to-school season. That’s because retailers are preparing orders for August as manufacturers in China cope with coronavirus shutdowns and delays, and there might not be enough goods to go around.

"Everybody will want to be back shopping, and that’s when the real inventory shortage will hit,” said Richard Maicki, a managing director at consulting firm Berkeley Research Group, who advises retail and consumer companies on turnaround plans. “That is not great timing.”

The coronavirus outbreak has idled factories that produce the world’s clothing, shoes and electronics. Spring and summer goods were shipped before the disruptions began, but expect shelves to look leaner by early summer, Maicki said. bloomberg.com

NY lawmakers introduce price gouging bill
New York State lawmakers from across the state said examples of price gouging on hand sanitizers and disinfectant wipes is a public health issue. New legislation would limit stores from increasing prices on consumer medical supplies by more than 10 percent when there is a public health emergency. The bill would also allow the Attorney General to fine retailers, manufacturers and distributors who are in violation by up to $25,000. news10.com

Coronavirus: How Employers Around the Globe Are Responding
Companies are scrambling to respond as the coronavirus, which causes the respiratory illness COVID-19, spreads around the world. During a Society for Human Resource Management (SHRM) webcast March 10, an official with the U.S. Centers for Disease Control and Prevention asked employers to do all they can to slow the coronavirus.

SHRM Online has collected a list of news reports on the following topics, reflecting the different ways in which organizations are reacting to protect their employees and their businesses:

● Emergency Leave
● Employee Relief Fund
● Coronavirus Testing
● Closures and Quarantines
● 'No-Contact' Food Delivery Offered
● Teleworking Promoted, Office Visits Restricted
● Domestic and Global Travel Restricted
● Work Areas Disinfected shrm.org

So you’re working from home now...
Here’s how to stay productive away from the office

● The Verge advises setting up an area that helps you focus, and make sure you have the tools you need, like reliable Wi-Fi and mobile signals. And don’t forget to stretch your legs every so often.

● Quartz offers tips on how to work from home when your partner is too, including setting up separate zones if possible and deciding who does what around the house during the day.

● The NYT has useful information for leaving the house, such as whether you can get your money back if you cancel a flight — and what experts say about whether you should travel at all.

● Take some mental health breaks, like watching this uplifting video about hygiene tips.

Leaked Target memo reveals how the retailer is trying to obliterate germs in its stores by wiping down everything from ATMs and handcuffs to Bullseye, the company's mascot

That whole don’t touch your face thing? Makeup shoppers at Sephora are not having it

Instacart and DoorDash now offer paid sick leave for workers diagnosed with COVID-19

PCI issues guidance for performing remote assessments in light of the coronavirus

Coronavirus fallout: At least 150 companies have warned of earnings hit

Adidas Predicts $1B Revenue Shortfall as Coronavirus Hits Chinese Sales
 

Don’t Be Duped by Felony Threshold Limits

By Robert Harling, President & CEO, Gatekeeper Systems

To prevent prison overcrowding, felony thresholds have been rising over the last few years. This means that for shoplifters to be charged with a felony rather than a misdemeanor, a shoplifter must steal much more merchandise.

To Loss Prevention and Asset Protection (LP/AP) professionals, this essentially means shoplifters have a license to steal from retailers with virtually no behavior-rectifying punishment. By charging the same shoplifters with a misdemeanor each time they are apprehended with no regard to criminal history there is nothing in place to inspire a chronic shoplifter to change their behavior. In the past, a shoplifter knew that after being charged with petty theft a few times, they’d be facing a lengthy prison term if caught again. The absence of this stipulation, according to most LP/AP professionals, has opened the flood gates of shoplifting, and they are feeling the pain.

Should LP/AP professionals be working to reverse these new threshold limits, or should they accept this new reality and begin focusing their energy on finding unique ways of safeguarding their assets?

In Calibration Group’s latest whitepaper, The Great Deception: Why Felony Thresholds Should Not Be Our Primary Focus, this question is explored in-depth, and the answer will surprise you.
 

Overstock.com Investor Seeks Docs On CEO's $90M Cash-And-Run

An Overstock.com investor filed a lawsuit in Delaware Chancery Court on Wednesday seeking records related to alleged wrongdoings by the company's founder and former CEO before he cashed out on $90 million in stock and fled the country.

Stockholder John Murphy said he is seeking the records under Section 220 of Delaware General Corporation Law to investigate possible breaches of duty by company directors in connection with actions by the Utah-based online retailer’s former President and CEO Patrick M. Byrne.

“This action seeks corporate books and records to investigate Byrne’s and the board’s role in what appears to be a scheme to cause a so-called ‘short squeeze,’ resulting in Byrne’s sudden resignation from the company and sale of over $90 million of his stock,” the suit said.

“Having spent years publicly espousing wild conspiracy theories about the U.S. government, the U.S. capital markets, and short sellers, Byrne has harmed Overstock’s reputation and repeatedly put the board on notice of his evident psychological instability,” Murphy claims.

“His misconduct not only triggered an investigation by, among others, the U.S. Securities and Exchange Commission, it contributed to the destruction of hundreds of millions of dollars of the company’s value,” the records suit contends. law360.com

Related: Patrick Byrne sells his Overstock shares, but blames the SEC and ‘Deep State’


FDA Warns Retailers, Manufacturers to Remove Unauthorized E-Cigarette
Products from Market
This week, the U.S. Food and Drug Administration issued 22 warning letters to online and brick-and-mortar e-cigarette product retailers and manufacturers across the country who sell flavored, cartridge-based electronic nicotine delivery system (ENDS) products advising them that selling these products, which lack marketing authorization, is illegal.

The warning letters were sent to some establishments with well-known names such as 7-Eleven and Shell and are the first of what will be a series of ongoing actions consistent with the FDA’s recently issued policy of enforcement priorities for e-cigarettes and other deemed products on the market. fda.gov

Kentucky House advances criminal justice reform bills to reduce prison population
The state House Judiciary Committee passed two criminal justice reform bills Wednesday designed to reduce Kentucky's overcrowded prison population and potentially save the state millions of dollars. House Bill 552, approved by a 23-0 vote, would give judges the option to consider graduated sanctions against offenders who violate terms of their probation, instead of revocation and sending them back to prison. The committee on Wednesday also passed House Bill 586, which lowers the criminal penalties for possessing trace amounts or residue of a controlled substance. courier-journal.com

Airport retailer OTG will use Amazon’s cashierless technology starting next week
Earlier this week, Amazon announced it will now sell its cashierless technology, dubbed “Just Walk Out,” to other retailers. Today, airport hospitality group OTG, which operates more than 350 restaurants and retail locations in North American airports, revealed it will be one of the first retailers to adopt Amazon’s tech in its own stores.

The first store, a CIBO Express Gourmet Market, will open next week (March 16) in Newark Liberty’s Terminal C. This will be followed by additional stores in both Newark Liberty and LaGuardia airports, OTG says. techcrunch.com

Will rival retailers buy Amazon’s ‘Just Walk Out’ technology?
The development of the Go store concepts was intended to eliminate the single biggest pain point for customers at retail — the checkout line. The data the retailer acquires is seen as a major benefit, giving Amazon and others who deploy it the kind of consumer insights typically associated with online shopping.

Dilip Kumar, vice president, Amazon Physical Retail, told Reuters that his company expects the success of its tech with other retailers to be determined by the customers who shop in those stores. He also said that Amazon will not use data collected at other retailers for its own purposes.

Critics of Amazon’s technology have, in the past, suggested that it comes with a number of limitations, including the costs and structural challenges related to placing video cameras and other hardware in store ceilings. Many question the viability of retrofitting stores with the Just Walk Out technology, meaning that its use may be limited to locations where it could be incorporated at the outset. retailwire.com

Project Python: Feds arrest over 600 alleged Mexican cartel members

Modell’s Sporting Goods files for bankruptcy; to liquidate

CVS To Buy 110 Schnuck Grocer Pharmacies

Drunk shopping translates into $44.9 billion business in the U.S.


Quarterly Results
Dollar General Q4 comp's up 3.2%, net sales up 7.6%; full-year comp's up 3.9%, net sales up 8.3%
Express Inc Q4 comp's down 3%, net sales down 3%; full-year comp's down 6%, net sales down 5%
 

COVID-19 Drives Rush to Remote Work. Is Your Security Team Ready?

A rapid transition to remote work puts pressure on security teams to understand and address a wave of potential security risks

Many companies, concerned for employees' health amid the rapid spread of coronavirus, have begun encouraging them to work from home. The shift, rightly done to protect people from infection, could also potentially expose organizations to cyberattack if precautions aren't taken.

"The unfortunate spread of COVID-19 is forcing many employees around the world to work remotely," says Bret Hartman, vice president and CTO of Cisco Security Business Group. "While necessary, this new level of workplace flexibility is putting a sudden strain on IT and security teams, specifically around the capacity of existing protections in place given surge in demand."

Security execs now have the issue at top of mind as companies move in the same direction, says Craig LaCava, global executive services director at Optiv Security. "Most CISOs are thinking about it, are being diverted to calls with executives briefing them about it, and just getting ready for worst-case scenarios," he says.

The problem, LaCava adds, is not everyone has the right devices, processes, and infrastructure in place to support a fully remote workforce.

Remote work fundamentally changes the dynamic, especially for teams accustomed to working side-by-side every day. People forced to change their behaviors may experience loss in productivity, communication challenges, and other unexpected roadblocks as they shift from corporate offices to home offices. An unexpected environmental change can drive security risk. darkreading.com

Tech Firms Seek to Head Off Bans on Facial Recognition
Amid rising calls for regulation, technology companies are pushing for laws that would restrict use of facial-recognition systems - and head off the more severe prohibitions some cities and states are weighing.

Microsoft Corp., Amazon.com Inc. and others stand to profit as government agencies and businesses expand use of the technology, which can require large investments in machine-learning and cloud-computing capacity.

That opportunity is threatened by campaigns to severely restrict its use.

San Francisco and six other cities have passed laws to block government use of facial recognition. Lawmakers in New York, Massachusetts, Hawaii and Michigan are considering some form of ban or strict limitation.

A coalition of 40 activist groups led by Fight for the Future is circulating “Ban Facial Recognition” petitions that call on lawmakers to block government agencies from any use of the technology.

Against this backdrop, Microsoft is backing bills in Congress and in its home state of Washington permitting use of the technology with oversight. The Washington state measures would allow facial recognition for specific uses such as investigating crime, controlling access to a building or identifying a ticket holder.

Amazon, the world’s largest provider of cloud-computing services, declined to comment, but has said it supports national standards. International Business Machines Corp. has called for “precision regulations” that don’t allow mass surveillance, and the CEO of Google owner Alphabet Inc. has said he is open to a temporary pause while regulations are developed. wsj.com

Never a Dull Moment in the World of Security - RSA Conference Afterthoughts

Attackers Distributing Malware Under Guise of Security Certificate Updates

Study: Retailers lag in leveraging data

Dunkin' Brands Announces New Vice President, IT Store Systems

Will Cannabis Users Get Workplace Protections in California?

New Bill Offers Protections for Medical Marijuana Users

Years after California legalized recreational use of cannabis, employers continue to struggle with determining their rights and liabilities regarding employees who engage in that activity.

In 2016, a majority of California voters approved Proposition 64, The Control, Regulate and Tax Adult Use of Marijuana Act. Prop 64 permits adults 21 years of age and older to possess and grow specified amounts of cannabis for recreational use.

That said, Prop 64 did not address the myriad implications of allowing recreational use of cannabis, including employers' rights and obligations to employees who choose to engage in that activity. Further confusing the issue has been employees who use marijuana to treat an illness pursuant to the Compassionate Use Act of 1996.

Recently, Assemblymen Rob Bonta, D-Alameda, introduced AB 2355. The bill seeks to make it an unlawful employment practice for an employer to refuse to hire or employ a person, to discharge a person from employment, or to discriminate against an employee because of the employee's status as a medicinal cannabis user. shrm.org

Canadian Security Roundtable
Cannabis security experts share best practices on industry direction
On January 22, Canadian Security magazine hosted the Cannabis Security Roundtable at its office in Toronto, Ont. The thought leadership event brought together security experts to discuss, debate and share their subject-matter expertise on how licensed producers, retailers and other cannabis-related businesses in Canada can protect their facilities, assets, staff, customers and data.

Sponsored by GardaWorld, Pivot3, Johnson Controls Inc., and Raytec Systems Inc., roundtable participants included:

● Paul Baziuk, Johnson Controls Inc.
● Ken Doige, CannTrust
● Charles Ethier, GardaWorld
● David Hyde, Hyde Advisory
● Mike Jamieson, Raytec Systems Inc.
● Dave Scott, Pivot3
● Brandon Smith, Canopy Growth Corp
● Mike Soberal, Aurora Cannabis

Click here to view the whitepaper, videos and Q&A articles produced from Canadian Security's Cannabis Roundtable

Cannabis and EHS Regulations Part 3

Penalties for noncompliance are steep

We described the “carrot” of increased business growth due to being an industry leader and implementing a top shelf EHS program. In turn, compliance costs are reduced allowing for reinvestment in the business. However, the “stick” may be waiting for those who choose to ignore EHS regulations and safety practices.

For those who plan to lay low, ride the storm out, or beg forgiveness rather than ask permission, be aware that costs for violations only get higher with each passing day out of compliance. While these penalty numbers may be considered extreme, the examples above indicate the cannabis industry is not immune to significant financial penalties and that agencies are enforcing the regulations the industry is required to meet.

Whether the owners are aware or not, these regulations have long been in place to guide other industries, and they do apply to the cannabis industry. Lack of knowledge, or misinterpretation, does not protect an operator from fines, or in some cases, prosecution. In a recent statement, Cal/OSHA Chief Juliann Sum encouraged the industry to take steps to protect workers. cannabisbusinessexecutive.com

Cannabis Around the World, Part IV: Modern Cannabis Policies

By Tony Gallo, Managing Partner & Katharine Baxter, Lead Technical Writer for Sapphire Risk Advisory Group

Cannabis Around the World is a multi-part series exploring cannabis’ journey around the globe – from its beginning in ancient cultures Before the Common Era, its spread and integration into new societies in the Common Era, and its current status in the governments of the modern world.

Africa:
Although cannabis is not indigenous to Africa, trade routes established Before the Common Era and during the Common Era made the plant popular in many African countries. Cannabis is now illegal throughout most of Africa, but the continent has a large black-market industry for the plant. In many of the most populous countries of Africa, all uses of cannabis are prohibited. Despite the ban on cannabis, it is widely cultivated in the Democratic Republic of the Congo. Although the death penalty is still a possible punishment for distributing cannabis, harvesting and selling the plant remains a popular source of income for many locals.

South America:
Medical cannabis is legal throughout most of South America, and although recreational cannabis is still illegal in some countries, many have also decriminalized the plant. In Argentina, medical cannabis use is legal for patients with specific conditions and the government provides the cannabis free of charge. Recreational cannabis use has also been decriminalized for up to 5 grams, but public consumption can result in a stop by police.

North America:
Most North American countries have some form of cannabis legalization or decriminalization. In 2018, Canada became one of the first countries in the world to legalize recreational cannabis and currently allow the possession of up to 30 grams or the personal cultivation of up to 4 plants per residence. Canada also legalized medical cannabis early, and since 2001 Canadian patients have had access to the plant. While recreational cannabis in Canada is regulated similarly to alcohol, medical cannabis is treated more like any other prescription drug and patients are allowed to possess up to 150 grams, or a thirty-day supply, in addition to the 30 grams of recreational cannabis they can possess at one time.  Read more

CBD & Hemp Market Cutting Traditional Retail’s Way
The 2018 Farm Bill legalized the production of hemp when it removed hemp from the definition of marijuana in the Controlled Substances Act. Because CBD is found in hemp, it effectively legalized CBD at the federal level, opening the door to an entire new product category.

But as CBD and hemp become mainstream, hurdles continue to appear. One big one is that consumers are still confused about the products. They remain uncertain about which manufacturers to trust and how CBD and hemp can help them. Retailers have a key opportunity to educate customers, allay concerns and introduce customers to quality products. cstoredecisions.com

Oklahoma: SB 1689 - ORC bill pending before the state legislature seeks to prevent pawn shops from selling stolen goods
This bill would prohibit unscrupulous pawn shops from continuing to buy new-in-box items from stores without some form of proof of purchase, such as a receipt.

Currently, we know that pawn shop will buy obviously stolen product from the same person - multiple times per day - and the pawn shop is covered as long as the criminal signs the pawn declaration slip.

Pawn shops paying easy cash for stolen items is why they are stolen in the first place! It's time to stop this practice. Retailers - have your governmental affairs people contact our legislators TODAY to have them support this! -Norm Smaligo, President at Oklahoma Retail Crime Association (OKRCA)